Unilever Plc said it expected a "modest" improvement in full-year underlying operating margin and reaffirmed its annual outlook after better-than-expected first quarter sales growth, adding that the impact of US tariffs would be "limited and manageable".
The maker of Ben & Jerry's ice-cream on Thursday reported underlying sales growth of 3% for the first quarter, beating expectations of 2.8%. Margins in the first and second half were expected to be "more balanced" than last year.
"All this being said, we are conscious that the macroeconomic environment, currency stability and consumer sentiment remain uncertain and we will be agile in adjusting our plans as necessary," Unilever said in a trading statement.
"We expect underlying sales growth to be within our range of 3% to 5%. This is underpinned by our strong innovation pipeline, good momentum in developed markets, and expected improvements in Indonesia and China in the second half of the year resulting from the decisive actions we have taken in both markets."
Reporting by Frank Prenesti for Sharecast.com